4th Annual Soweto Conference, CSBD, UJ 2013

Learning from the Israeli agricultural experience: A potential game-changer for South African rural and semi-urban development

By: Arthur Lenk Israeli Ambassador to

[email protected] Facebook: https://www.facebook.com/AmbassadorLenk

Paper presented at the UJ CSBD 4th Annual Soweto Conference 28th & 29th October 2013

Turning Tangible and Intangible Assets/Resources in Townships into Business Opportunities

Centre for Small Business Development (CSBD) University of Johannesburg

Tel: +27 11 559 5649/5518 Potcheefstroom Road www.uj.ac.za Fax: +27 11 559 5696 Soweto [email protected]

4th Annual Soweto Conference, CSBD, UJ 2013

Executive Summary

The Israeli agricultural experience offers relevant solutions to challenges faced by South African small-scale farmers. The -South Africa partnership in this area has been very successful in recent years, and a scaled-up commitment to these programmes can offer significant and tangible benefits and business opportunities for South Africans.

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1. Introduction While there have been challenges in the bilateral relationship between South Africa and Israel in recent years, an emphasis on knowledge-sharing and food security development from Israel can be a catalyst for growth in South Africa’s rural and semi-urban economy — creating jobs, encouraging modern skills development, and increasing agricultural output by the local economy and community.

South Africa’s National Development Plan 2030 highlights the growth potential of agriculture: As the primary economic activity in rural areas, agriculture has the potential to create close to 1 million new jobs by 2030, a significant contribution to the overall employment target. To achieve this, South Africa needs to: . Expand irrigated agriculture. Evidence shows that the 1.5 million hectares under irrigation (which produce virtually all South Africa's horticultural harvest and some field crops) can be expanded by at least 500 000 hectares through the better use of existing water resources and developing new water schemes… 1

Israel’s agriculture scientists have revolutionised the way farmers irrigate and store crops, protect plants from drought and disease, keep pests away naturally, and purify and reuse wastewater. Israel is a world leader in agricultural technologies, despite the fact that the geography of Israel is not naturally conducive to agriculture. It is a highly developed industry, and Israel is a major exporter of fresh produce — yield per acre of most of its farm products is among the highest in the world. Israel has world-level capabilities in agriculture, despite the fact that more than half of the land area is desert, the climate and a dearth of natural water resources do not favour farming, and only 20% of Israel’s land area is naturally arable.

MASHAV — Israel’s Agency for International Development Cooperation — has over 50 years’ experience throughout the world, including, of course, in Africa, sharing experience in a wide range of subjects, including agriculture, education, and health care. It has, in recent years, created successful agricultural development partnerships and projects in a diverse group of African countries, including Rwanda, Kenya, and Ethiopia.

1 National Development Plan – 2030, Chapter 6: An integrated and inclusive rural economy, p. 219 2 | P a g e

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The General Assembly has recognised the importance of this type of agricultural knowledge-sharing by overwhelmingly approving a resolution2, initiated and sponsored by Israel, titled Agricultural technology for development. Article 2 of the resolution states:

Urges Member States, relevant United Nations organizations and other stakeholders to strengthen efforts to improve the development of appropriate sustainable agricultural technologies and their transfer and dissemination under fair, transparent and mutually agreed terms to developing countries, especially the least developed countries, in particular at the bilateral and regional levels, and to support national efforts to foster the utilization of local know-how and agricultural technologies, promote agricultural technology research and access to knowledge and information through suitable communication for development strategies and enable rural women, as well as men and youth, to increase sustainable agricultural productivity, reduce post-harvest losses and enhance food and nutritional security…

Over the past few years, MASHAV has taken on a number of projects, developing successful models of small-scale agriculture in vegetable growth in South Africa. These partnerships have all included education, introducing technologies, and advice on the marketing and supply chain, to enable tangible benefits and profits for local farmers.

2 The resolution has been approved three times, biannually, since 2007, most recently in UNGA Res. 66/19, 22 December 2011. The 2011 resolution is appended to this paper as Annex A. http://www.un.org/en/ga/search/view_doc.asp?symbol=A/RES/66/195. The resolution is currently being considered by the UN General Assembly, and will be voted upon in early December 2013. 3 | P a g e

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2. Agriculture in South African development Mo Ibrahim, in the 2013 Nelson Mandela Annual Lecture, emphasised the centrality of agriculture for Africa. He noted that 70% of Africans are dependent on the land, while only 2% study agriculture. He also emphasised the fact that, in many parts of Africa, agriculture is dependent on the work of women.

Small-scale agricultural farming is a key priority for South Africa, and recent figures have shown a growth of some 74 000 jobs in agriculture employment in 2013. According to a recent article in the Mail & Guardian, agriculture is the second-fastest growing sector in South Africa’s economy3. The article cited a study by the University of Cape Town that argued that a minimum wage for agriculture workers does not, in fact, hurt the growth potential of the sector. The article concluded that ―providing decent livelihoods for rural South Africans requires a radical programme of agrarian reform.‖

Tina Joemat-Pettersson, South Africa’s Minister of Agriculture, Forestry and Fisheries, recently told Parliament: The Smallholder irrigation schemes have the potential to have a significant impact on local socio-economic development and to advance improved food security, poverty eradication and increased employment. Indeed, in many instances, irrigation schemes are the main economic activities in areas endowed with water resources. Unfortunately, a large number of smallholder irrigation schemes are dysfunctional, while others are inefficient in their operations. Due to the importance of these irrigation schemes for accelerated agricultural production, their effective revitalization is extremely important to realize higher yields. 4

As noted above, South Africa’s National Development Plan, in Chapter 6, deals in great depth with agricultural development within the topic of ―An integrated and inclusive rural economy.‖ The proposals and programmes suggested in this paper have taken to heart the recommendations by the NDP, such as the call to:

3 Mail & Guardian, 16 August 2013. 4 Tina Joemat-Pettersson, Minister of Agriculture, Forestry and Fisheries of South Africa, National Council of Provinces Budget Vote Speech, 11 June 2013. 4 | P a g e

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“…find creative combinations between opportunities. For example, emphasis should be placed on land that has the potential to benefit from irrigation infrastructure; priority should be given to successful farmers in communal areas, which would support further improvement of the area; and industries and areas with high potential to create jobs should receive the most support. All these will increase collaboration between existing farmers and the beneficiaries of land reform”.5

5 National Development Plan – 2030, p. 219. 5 | P a g e

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3. Israel and agriculture ―We do not rejoice in victories. We rejoice when a new kind of cotton is grown and when strawberries bloom in Israel.‖6 – Golda Meir

a. Domestic innovation

Israel’s world-renowned agricultural sector is characterised by an intensive production system, which stemmed from the need to overcome the scarcity of natural resources, particularly water. The uniquely high level of development in the agricultural sector is often attributed to the close cooperation and interaction among scientists, extension advisers who provide support to farmers, agro-industries and farmers. These four parties have joined together in Israel to promote advanced technologies in a wide variety of agricultural sectors. The result is a cutting-edge agricultural industry in Israel, more than half of which is classified as desert. Despite the decrease in the number of farmers and agriculture’s share in the GDP in recent years, agriculture continues to play a substantial role as the major food supplier for Israel’s domestic market, and its agricultural technology and expertise serve as a significant factor in Israeli export. Much of Israel’s agriculture is based on cooperative communities (kibbutz and moshav), founded on nationally owned land leased on a long-term basis. Many of these communities date back to before the birth of the State of Israel, and were formed in the early 20th century. A kibbutz is a rural community of several hundred inhabitants who run a large communal production unit. Kibbutz members traditionally jointly owned the means of production, and shared social, cultural, and economic activities. More recently, most of the income of kibbutz collectives has come from non-agricultural activities (industrial enterprises, agro-tourism, and services), and many have been undergoing extensive reorganisation to match modern times.

6 ―Golda Meir: Peace and Arab Acceptance Were Goals of Her 5 Years as Premier,‖ New York Times, 9 December 1978; http://www.nytimes.com/learning/general/onthisday/bday/0503.htm 6 | P a g e

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Another type of cooperative community in Israel, generally including a few dozen to one hundred individual family farms, is a moshav, which is defined as an ’agricultural cooperative society.’ In most instances, a moshav is based on a shared allocation of resources, such as farm land, water quotas, and other productive inputs, as well as, in some cases, joint ownership or use of packing and marketing facilities. The residents in both types of communities are often provided with municipal services. The kibbutz and moshav communities account for more than 80% of Israel’s agricultural produce.

b. A word on urban agriculture in Israel

There are obvious limitations to urban agriculture. The economic value thereof in Israel has always been limited. However, historically, there have been a number of tangible advantages in encouraging small, sometimes even symbolic, urban gardening and agriculture. Agricultural labour was one of the preeminent concepts of the Zionist ideology during the 1930s, promoting the Jewish settlement of the land that would soon become the State of Israel. Early Zionists saw small urban farms as critical to the development of a new society in Israel. It connected the individual to the land, and was perceived as a better, more self-fulfilling path to a livelihood. Thus, thousands of dwellings and small agricultural plot units were constructed throughout the country, from the 1930s through the 1950s.

By 1942, there were more than 4 600 urban farms, most of which were between 1 000 and 2 000 square metres, according to Prof. Tal Alon-Mozes of Technion, the Israeli Institute of Technology. Urban farms were ideological and connected with the goals of the Zionist movement. In the first master plan of Israel, in 1951, urban farms assumed a ’protected’ status in the economy (much like the mines in South Africa). However, eventually, the Kibbutzim, rural farms separate from urban areas, dominated, becoming more prosperous and closely associated with agricultural growth in Israel.7

7 J. Green, Urban Agriculture Isn’t New, http://jacsmit.com/book/Chap02.pdf

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Nevertheless, there are experts who believe that irrigation schemes for small semi-urban farmers have the potential to have a significant impact on local socio-economic development, and to advance improved food security, poverty eradication, and employment. Indeed, in many instances, irrigation schemes can be primary economic activities in areas with limited water resources. While many small-scale irrigation schemes are dysfunctional or inefficient in their operations, many believe that there is potential for small farmers with the appropriate training and motivation.

c. MASHAV

Israel’s official international development cooperation programme was launched in late 1957, with the aim of sharing with the rest of the developing world the know-how and technologies that provided the basis for Israel’s own rapid development. MASHAV, the Hebrew acronym for Israel’s Agency for International Development Cooperation, was established as a division of the Ministry of Foreign Affairs. What started as a modest programme, focused on grassroots level human capacity-building at a time when Israel itself was still very much a developing country, has blossomed into an extensive programme of cooperation throughout the developing world, with the aim of ensuring sustainable social, economic, and environmental development.

Since its establishment, MASHAV has trained over 270 000 course participants from approximately 132 countries in Israel and abroad, and has developed dozens of demonstration projects worldwide. MASHAV has consistently made poverty alleviation, provision of food security, empowerment of women, and an upgrade of basic health and education services its goals. The formalisation of these priorities in the Millennium Development Goals (MDGs) put into focus Israel’s longstanding efforts to put its solutions at the service of developing countries.

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4. Israeli agriculture in Africa Israel has continued in recent years its long tradition of promoting agricultural cooperation throughout Africa. MASHAV is currently active in over 30 countries across the continent, including inviting expert participants to programmes in Israel, delegating short- and long-term experts, and cooperating with local and international partners. It also looks to promote economic cooperation in the agricultural sector. Currently, in addition to the agricultural development efforts here in South Africa, central projects have been coordinated in Ethiopia, Rwanda, and Kenya.

With the goal of increasing the income of fish farmers’ households, eradicating poverty, and improving the Lake Victoria ecosystem, Kenya, Germany, and Israel joined hands in a trilateral partnership to improve the farmed tilapia value chain in Kenya. The cooperating partners include Kenya’s Ministry of Fisheries Development (MoFD), MASHAV, and the German Federal Ministry for Economic Cooperation and Development through its implementing partner, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The trilateral agreement states two main cooperation areas aimed at the improvement of the ecosystem of Lake Victoria, based on the needs of the region and the respective comparative advantages of the partners: the promotion of tilapia fish farming as a business, with an emphasis on ’pro-poor’ action by supporting capacity-building activities for establishing tilapia aquaculture, and a contribution to the improvement of wastewater management around Lake Victoria. The official launch of the project and the signing of the trilateral agreement took place in Kisumu, Kenya, in August 2012.

Another joint programme focuses on the development of horticultural plant propagation in Ethiopia, through nursery cultivation and tissue culture propagation, and is coordinated by a MASHAV long-term agricultural expert. The goal of the project is to introduce and supply improved facilities, equipment, and materials, as well as to provide intensive capacity-building activities. The programme demonstrates large-scale plant production, with timely production planning and quality control inspections. The programme’s nurseries produce high–yielding, internationally marketable varieties of avocado, citrus, and mango. Various rootstocks are introduced for adaptation to different soil and water conditions, and to increase tolerance to soil- borne diseases. The programme upgrades small-tissue culture research laboratories into semi-

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commercial-scale production of a range of produce, including pineapple, banana, potato, ensete, vanilla, cassava, and coffee. Through collaboration with other international and national aid agencies, in coming years, the programme’s scope will increase to cover additional aspects of fruit tree and vegetable cultivation. This will empower small holders through addressing horticultural production in a coordinated and resources-saving manner, thus overcoming the inconclusive character of a single aid programme. The third phase of the project commenced in May 2012, with the intention of expanding and diversifying activities in the field of horticulture, and will continue until 2015.

The Minister of Agriculture of Rwanda asked MASHAV to establish a special Centre for Advanced Horticulture, designed for all levels of Rwanda’s farming community, from small holder farmers to commercial farmers. The design of the centre is based on an Indo-Israel model of the Center of Excellence in Agriculture, established in Haryana, . The model is based on the production of four main products: transfer of know-how, capacity-building and demonstration; agro-inputs (nurseries for better seedlings and varieties); and fresh produce. The centre will display a whole range of technologies for horticulture production, under cover and open field. This centre will be made available for applied R&D, training, and exhibition.

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5. Israeli agriculture in South Africa Israel began a project based on the concept of the African Market Garden, focusing on poverty reduction and crop productivity, and established in different regions in South Africa as a result of its participation in the World Summit on Sustainable Development (WSSD) in Johannesburg, in August 2002. The project, named TIPA (the Hebrew word meaning ’drop’ and an acronym of Techo-agricultural Innovation for Poverty Alleviation), emphasises sharing knowledge in vegetable farming production systems for small landholders, making use of Israel’s world famous drip irrigation systems. The TIPA projects are run by the farmers themselves, who, since 2004, have been accompanied by the active presence of Mr. Isaac Isaac, a MASHAV long-term expert based at Israel’s Embassy in South Africa. One of the founding partners of the project in South Africa was Promedia, who saw it as an opportunity to share Israel’s experience in townships. That original vision faced a range of challenges in urban areas, including the active involvement of cooperatives without agricultural agendas or experience, limitations on space to develop, and social dilemmas.

Mr. Isaac with farmers from Limpopo

Over the past few years, Mr. Isaac has worked in a number of regions in South Africa, such as Hazyview in Mpumalanga, Modjaji (near Tzaneen), and Khomo in Limpopo, Bethanie in North West Province, and Boschkop in Gauteng. Farms using Israeli technologies and techniques such as drip irrigation, advanced green houses, and creative water management have often

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been successful. The farmers who have internalised these techniques and embraced the methods have prospered, growing produce such as green beans, cabbage, corn, tomatoes, and spinach, and establishing connections with leading retailers such as Shoprite and Pick n Pay. A key lesson has been a shift in farmer’s perspective to one of being a manager, rather than ―only a farmer.‖ Another benefit has been learning the advantages of using high-quality grafted and ungrafted seedlings, such as those produced by Hishtil, an Israeli-South African nursery based in Mooketsi. Other Israeli companies are also active in South Africa, offering advanced technologies and experience to South African partners. These activities have led to annual contracts for regular supply of produce, together with tangible long-term benefits for the farmers. Governmental bodies such as the Small Enterprise Development Agency, the Ministry of Rural Development, and the National Development Agency, have shown interest, and worked together with Israel on these projects.

Three examples of successful Israeli-South African programmes

As noted, over the past few years, MASHAV has gain a reasonable level of experience in South Africa. Not every effort has succeeded, of course. Nevertheless, that experience has led to gained knowledge, and a number of models have shown how further achievements might be reached. Here are three examples of programmes and partnerships that have proven the potential of cooperation based upon Israeli experience in South Africa.

a. Hazyview, Mpumalanga

The idea for MASHAV working in Hazyview was originally raised by the Mineworkers Investment Company (MIC), which was connected to MASHAV by Primedia. In 2008, Mr. Isaac, together with representatives of MIC, identified an individual farmer in the area who, on only two hectares, was raising cabbage, using basic furrow methods. The farm started using drip irrigation, which saved time, costs, and the need for workers. The change also allowed the farmer to significantly increase crop density, and with the introduction of crop rotation, the farmer quickly saw good results.

Other farmers in the area were soon identified to join the MASHAV programme. Today, ten farms are using these methods to grow cabbage, tomato, and maize. Today, there is a greater understanding of the advantages of growing high-value crops, such as tomatoes, which offer better economic returns for the farmers. Another innovation that has proven successful for the 12 | P a g e

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farmers has been annual solar soil sterilisation, removing problematic diseases from the soil. Three of the farms signed an annual agreement with Shoprite to provide regular produce to the chain. The farmers, although all independent, have joined together to market their produce via Shoprite. Officials from the Department of Rural Development and Land Reform have visited the project, and had discussions with MASHAV about further cooperation and copying the Hazyview model in other areas.

Packed green beans from Hazyview for sale by Shoprite

Tomatoes from Hazyview

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b. Boschkop (Inkwazy), Gauteng

This semi-urban project, only 15 kilometres outside of , was directed to MASHAV by the Small Enterprise Development Agency (SEDA), an agency of the South African Department of Trade and Industry, in late 2011. This plan was the first effort in a cooperation agreement signed between MASHAV and SEDA, in 2011. The farm was owned by a cooperative, led by a single woman interested in developing its greenhouse capacity. The farm already had both a greenhouse and tunnels, but was not taking full advantage of those technologies.

The MASHAV expert advised installing rolling screens and anti-insect nets that would allow for ventilation and climate control within the greenhouse and tunnel environment. Another significant change was the use of soilless media bags, due to problems with the soil in the greenhouse and tunnel. The first harvest following the adaptation, in December 2012, was a significant success, gaining interest from various supermarket chains in Gauteng. The farmer has rotated between tomatoes, cucumbers, and spinach in recent months. Currently, SEDA is considering future support for this farm. In any case, it has been shown that basic changes in technology and practices can have a material impact on the production of greenhouses and tunnels in South Africa. MASHAV has begun work on other, similar projects, to build upon the successes in Boschkop.

Tomatoes growing in soilless media bags in Boschkop

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Spinach growing in the Boschkop farm tunnel

c. Bethanie, Northwest

Bethanie was suggested to MASHAV in 2010 by a local businessman, and a plot of land, a cooperative farm combining the resources of four farmers, was identified as having good potential, due to its access to water and electricity, and the commitment of the farmers. Extensive preparation was required, including the purchase of a tractor and other basic supplies, erecting a storage area, and accessing appropriate seedlings and fertilisers by the Joshua Doore company.

This project is similar to the Hazyview project, on a smaller scale, on a total of eight hectares of land. The farmers rotate a number of crops on the land, including cabbage, corn, and beetroot, 15 | P a g e

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now tilling the land year around. The first crop of cabbage, harvested in June 2013, was sold to the Pick n Pay supermarket chain, and there is the potential for an annual contract in the near future. Recently, one of the farmers spoke of her vision for growth of the project to additional land, based upon the confidence she gained from the success of the first few seasons.

Spinach on Bethanie farm using drip irrigation technology

Ambassador Lenk and Mr. Isaac with Bethanie farmers, August 2013

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6. Conclusion and recommendations It is clear that South Africa has decided that small-scale agriculture is a priority in its national development. Given the prominence of this sphere within the formal National Development Plan 2030, and the need for training, careful water management, and assistance to small-scale farmers throughout the planning, work, and supply chain, Israel’s experience is uniquely appropriate for South Africa looking forward. Israel has shown top-level experience in these spheres and in sharing its experience, both across the African continent and in key initial projects in South Africa. Cooperation with Israel with its world famous experience in rural development would strongly benefit South Africa in the years to come. Such cooperation would also have a positive impact on bilateral relations between the two countries, and open up additional opportunities in a range of spheres for Israelis and South Africans.

Based on the experiences of Israel’s MASHAV experts here and in other places, there are five core lessons that would ensure a successful up-scaling of such programmes in South Africa:

a. Correct government partners – Key public sector stakeholders need to be identified and brought in to support such a programme. Senior decision-makers within the Department of Agriculture, Forests and Fisheries, and the Department of Rural Development and Land Reform, both at national and regional level, can show political and economic commitment to up-scaling MASHAV schemes in priority regions. In other African countries where Israel has had success, such as Ethiopia, Rwanda, and Kenya, high- level government involvement set the appropriate tone. A third party government or NGO, as has been involved in other countries, could be useful. b. Careful matchmaking – Choosing appropriate local partners by carefully identifying and vetting potential farms and participants must be carried out. The plan must include a commitment in term of time and resources by decision makers, experts, and farmers. Cooperative groups should be based upon shared agricultural interests and abilities, rather than other considerations. A timeline, based upon past successes, should be built, to allow for appropriate expectations and a learning curve that would allow all parties to see progress and success. c. Corporate partnership – The unique history and experience of South Africa presents an opportunity for corporate partnership via Black Economic Empowerment (BEE)

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legislation. Without entering the political debate within South Africa about the challenges of BEE, it is clear that there is a group of corporate leaders who have already found social benefit in participation in MASHAV programmes in South Africa. The small-scale farmers, who are the key beneficiaries of such programmes, have been shown to be the type of participants that have often proved elusive in other BEE corporate involvement programmes. MASHAV has, thus far, been successful in South Africa in identifying appropriate corporate participation that offered value added for the participants and for the companies. The Embassy has been approached by other South African companies, who have shown an interest in taking part in future MASHAV efforts. d. Building on successes – Successful farms, such as those in Hazyview, Boschkop, and Bethanie, can be used as models and learning centres for the next stage of development in those and other regions. Erecting model farms that others can learn from can be considered. Such programmes have proved successful in other countries, such as China and India, where Israeli model farms have become examples of local potential using Israeli technologies and methods. e. Commitment to training and education – The aim is building a series of MASHAV training programmes in South Africa and in Israel for participants, decision makers, and other stakeholders, to transfer knowledge and to learn from shared experience. Taylor- made courses for South Africa could be built, either with a visiting Israeli MASHAV expert or for a group of participants in Israel. A large number of such international courses should take place in Israel each year, with participants from around the world. Three examples of MASHAV agriculture programmes in Israel in the first weeks of 2014 include:  Advanced Methods for Increasing Dairy Yield: Small & Large Ruminants, 6 – 30 January 2014;  Policies, Strategies and Support Systems for Rural Revitalization, 13 January to 5 February 2014; and  Postharvest Physiology, Pathology and Handling of Fresh Commodities, 10 February – 6 March 2014.

For more information about these and all future MASHAV courses in Israel, visit MASHAV’s website or the website of the Embassy of Israel to South Africa.

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